Koovs Share Discussion Threads

[monnow] 01/2/2017 11:03

HiDuxy, I do get tech business model.Im certainly not trying to undermine this.
My concern lies not around the model they are following per-se, which could succeed, but do they have enough capital to run at a loss for perhaps years to establish high rank.
The answer is probably no. They are not a plc worth 10 billion trying to crack mass inertia in India, but a fledgling, comparable to say me, trying to take on ASoS,in the UK, with my budget. They are in a rugby scrum with some really big boys.. So I aim to re purchase when there is more evidence that my holding won't get diluted into thin air. I am aware I will loose potential gains,( probably big ) but that is my risk/ reward view. Hope that explains my viewpoint a little better.

[duxy786] 01/2/2017 11:02

Sorry, meant 50

[rick678] 01/2/2017 11:02

ASOS sells into India so I assume they make a profit per item sold, so why do KOOVS keep reporting losses? Is it all down to marketing spend?

[duxy786] 01/2/2017 11:02

I've tried smaller figures and it's seems they won't even quote me for 5pm shares atm

[duxy786] 01/2/2017 10:57

Harebridge....I advise everyone to their own research and not go on anyone else's say so however to answer your question, yes I am confident this will mature slowly in to a highly prosperous business worth more than boohoo and the like, who face retail competition as well as online competition. The management is who I have backed here along with a tried and proven online business model.On a separate note...you are correct, I can't even buy a measly 1000 shares atm. Was looking to add another mid size chunk of around £10-15k but it seems like an impossibility at this moment in time.

[harebridge] 01/2/2017 10:39

Rick- Lord Waheed Alli & Robert Bready left ASOS in 2012 to open up a similar version in India alone.

[rick678] 01/2/2017 10:35

Why do they only sell in India?

[harebridge] 01/2/2017 10:33

Hey duxy- I thought I was the only one left in the building (currently hiding under a table lol).There is a massive undermine campaign going on with the share price really struggling.The plus point is that it's impossible to buy a single share at the moment, but easy to offload.I really believe there's a massive order in place being worked at 45p.You still confident here?

[harebridge] 01/2/2017 10:28

Can't buy a single share at the moment, but can sell 50,000Large order being worked at 45p

[duxy786] 01/2/2017 10:27

Nothing quite like watching old school metric users trying to figure out tech businesses. Seen this time and time again with the highest degree of failure. Still invested here quite heavily with a 25p average so I see this very differently to others however, been looking to add and today seems like an ideal opportunity

[harebridge] 01/2/2017 10:18

monnow- that's a good strategy.

In 2015, losses were £16.7 million (£5.7 million & £11 million)

So far in 2016, losses are £9.1 million & a projected £8.8 million (Peel Hunt projection). Giving a yearly loss of £17.9 million (comparable to last year)

It all depends on 2nd half losses & if the management team are actually learning anything.

Figures out in July.

As for remaining cash. As of 30th Sept 2016, Koovs had £7.7 million together with a fundraise of £12.9 million giving £20.6 million, which should see them through until around the end of this year, when they will need more cash.

None the less, major Institutions must be asking questions as the current share price continues to fall.

Personally, I believe this is being sold down to 45p so that HT Media can cash in as they have done before.

Wouldn't be surprised to see their holding move to another Institution for 45p!

[monnow] 01/2/2017 08:43

No not invested now Harebridge.I want to see how there capital burn is doing with more detailed figures. I guess if they come back to the market for another capital raise too soon I will have my answer,if the capital allocation looks like becoming sustainable , I will be back in.

[harebridge] 01/2/2017 07:42

Yes, definitely not for the faint hearted, hence why over 80% of shares are not in free float, tied up with tech savvy Institutions & Directors.Unless one can understand how early stage tech growth companies scale up, it's pointless using 'old school' metrics to understand these kind of companies.The same rhetoric was used on the ASOS threads in the early days (still there on ADVFN), when digital media entrepreneur Lord Waheed Alli took the share price from 4p to £20.As they say, it's all about management, management, management!

[trigger16] 01/2/2017 06:33

This is definitely not one for the faint-hearted. It has all the trappings of a story stock disaster complete with fanatical bb devotees.

I haven't yet seen any convincing explanations as to why it's a good idea for Koovs to be running on negative gross margins. Surely that's just asking for trouble but what do I know...

Well good luck anyway to the holders.

[harebridge] 31/1/2017 20:58

Lol! Are you still holding here or thinking of getting back in?

[monnow] 31/1/2017 17:47

Harebridge, there I was thinking you were Putneylad lol,

[harebridge] 31/1/2017 08:50

Market Master- hope this helps.paulypilot - 24 Sep 2015 - 09:12 - 33 of 5142 - 1My biggest investing mistake was not buying 500k Asos shares at 5p, it was selling them at 9p, because the stock looked so expensive on conventional metrics! What a terrible mistake, my holding would have been worth about £35m at the peak if I had held on!So I decided when I found something with similar growth potential, I would buy and hold it

[putneylad66] 31/1/2017 08:20

Paulypilot does have a point about cash burn & I do read his Stockopedia blogs. I've invested some money here (am down), but am confident it will work out. Yes this is a risk, but I just wanted to get in early, hoping to multibag.

[market master] 31/1/2017 08:01

Didn't you sell ASOS when it was 9p only to see it go over £50?

[paulypilot] 31/1/2017 01:02

KOOV is binary - if they can stem the cash haemorrage, then it could work.
If they can't, it's likely to go bust.

Why get emotional about it? And why take the risk?

Harebridge - you won't chase me away! Been through it all for 20 years, including Globo, Quindell & all the Chinese frauds. I was right on all of them, and didn't get a single apology from the rampers like you.

PP.

[paulypilot] 30/1/2017 21:52

Thanks for the ad hominem attack Harebridge.PP

[harebridge] 30/1/2017 08:48

More recent details about Koovs, private high margin label accounting for 42% of sales.

Meenakshi Kumar | Monday, 30 January 2017

Koovs receives 3000 to 4000 orders a day with an average ticket size of Rs 1,500 to Rs 1,600.

The retailer is looking to add 500 to 600 style lines per month.

The number of lines or category of apparels offered by its private label Fashion Basics and K Denim is now 10,000 and account for over 42 percent of all sales. It plans on adding more categories in the future with recent additions including knitwear, party wear, and tailoring categories.

[melody9999] 28/1/2017 21:02

DVB - its a big red flag for me. So I will only invest here after the next placing which means I know that KOOV will have enough cash to continue trading. (BTW I am not suggesting for a minute that that will not be the case.) It also means I will be buying close to the placing price.

If they were more transparent with their numbers then I might take a different view because elsewhere I am certainly invested in the online retail space.

[harebridge] 28/1/2017 09:30

A large delayed buy of 103,000 shares @ 50p showing up for Thursday. That's confidence!Peel Hunt also reiterated BUY target of 100p